Section 7 of NIA : Section 7: ''Drawer''

Explanation using Example

Imagine John writes a cheque to pay Emma for her services. In this scenario:

• John is the drawer of the cheque.
• The bank where John has his account is the drawee.
• Emma is the payee, as the cheque is written to her.

If John's cheque also mentions his friend Mike as someone who can pay Emma in case his bank cannot, Mike is the "drawee in case of need".

When John's bank agrees to pay the cheque and marks it as such, the bank becomes the "acceptor".

If the bank initially refuses to pay the cheque and Emma protests, and then Mike steps in to pay the cheque to honor John's obligation, Mike is acting as an "acceptor for honour".